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Netflix To Pour In Another $1B In New Mexico As It Gears To Film 'Stranger Things 4'

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Netflix To Pour In Another $1B In New Mexico As It Gears To Film 'Stranger Things 4'

Netflix Inc (NASDAQ: NFLX) is expanding its Albuquerque Studios and committing an additional $1 billion in production spending in New Mexico, Deadline reported Monday.

What Happened: The expansion involves the addition of 300 acres to the existing studios and the creation of approximately 1,000 production jobs over the next decade, according to Deadline. 

The Albuquerque Studios will reportedly generate $150 million in capital expenditures with up to 100 stages built along with other infrastructure.

“I am glad Netflix has chosen to double-down on its commitment to our state, and our partnership will continue to grow for the benefit of New Mexicans across the board,” said New Mexico Governor Michelle Lujan Grisham. 

“[The expansion] allows us to be more nimble executing our production plans while cementing the status of the region as one of the leading production centers in North America,” said Netflix Co-CEO Ted Sarandos.

Netflix is due to begin filming its science fiction horror series “Stranger Things 4” in Albuquerque, as per Deadline.

Other series shot in New Mexico include “Army of the Dead,” “El Camino,” and “Daybreak.”

Why It Matters: New Mexico will provide up to $17 million in funding under the Local Economic Development Act (LEDA), while Albuquerque will extend up to $3 million under LEDA funding for the expansion project, noted Deadline.

Albuquerque will also issue bonds to partially abate property and other tax over a 20-year period for the initial $500 million investment by Netflix to build the facility.

The subscription video-on-demand firm committed to spending $1 billion in the state when it purchased the Albuquerque Studios in 2018.

Netflix says it has spent more than $200 million since it came to New Mexico and used more than 2,000 production vendors and hired more than 1,600 cast and crew members. 

Price Action: Netflix shares closed nearly 2.4% lower at $476.62 on Monday and rose 0.55% in the after-hours session.

 

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